IPPs withdraw sovereign guarantee notices against GoP – Alfalah Securities Limited

Karachi: The Independent Power Plants (IPPs) have withdrawn sovereign guarantee notices issued against the Government on account of a deal according to which the government would pay PkR 8.5 bn to these power plants and would also restore the payment of normal daily payments of PkR 200 mn.

According to Alfalah Securities, the daily payments were abandoned by Pepco in retaliation to issuing Sovereign guarantees to the government. However, Pepco has agreed to borrow funds from the banks and release PkR 8.5 bn to these IPPs by September 29, 2011 while the remaining PkR 26 bn would be paid by October 14, 2011.